The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1887-11-18

guard the public against loss and
injuries arising from the fraud OF
mistake, or rashness and indiscre-
ton Of their agents. And there is
no hardship in requiring from pri-
vate persons dealing with public
officers, the duty ofinquiry las to their
real or apparent power and author
ity to bind the Government" This
principal is applicable to not merely
the financial agents of the Govern
ment, but the Ministers who gave
them the instructions. As the en-
gagement to pay the els, 900 in adj
dition to the five per cent. commits
sion was unauthorized by the Act of
the Legislature the country is not
bound by it.
Question z: "If the Court shall
say that the Loan Acts of 1886 do
not authorize the engagement to pay
f1j,000 in addition to the five per
cent. as commissions earned therein,
would the Government then be
justified in refusing to issue bonds
to cover the $4,000. If it shall lalso
appear that the Government has
contracted for the payment of such
f15,000 in addition to the commits
sions and has actually received the
remainder of the money!"
This is not matter of law, but a
matter of policy for the Government
and the Legislature to consider and
settle. If by Justified" is meant
legally bound, we are not suilici-
emily informed as to the facts of the
case. Much would depend upon
what acts of ratification, if any, the
Government has done, and also
upon the form of the scrip issued to
the general subscribers for the
bonds, and by whom issued, and
also who are the holders of the
scrip.
Question 8. as the form of the
bond herewith submitted authorized
by the Loan Acts of 1886 with its
proposed Amendment! The pro-
posed amendment of the Acts of
1886 is TO authorize the Minister of
Finance TO issue bonds expressed in
London, England, in sterling money.
But the form of bonds exhibited to
us, as being what would be executed
for the English subscribers, contains
much which does not conform to our
statutes. beside the variation of
pounds for dollars. Nine conditions
are expressed, pursuant to which the
bonds are issued, some of which are
unauthorized and some in contraven-
tion of the term of the Act as will
appear by comparing them with the
Act. We specify the conditions 4,
5 and G. That the bonds to be re-
deemed after ten years shall be
determined by drawings by lot at
certain counting house in London
and advertised in London news
papers.
The Act only provides that the
bonds shall be redeemable in not
less than ten, nor more than thirty
years after the date of issue. The
government may choose to redeem
the whole of them in whatever part
of the world held, at the expiration
of ten years. Conditions Z and 8
seem entirely unnecessary to be ex-
pressed in the bonds, and are not
suggested by the statute. Condition
8 respecting freedom from taxes is
plainly expressed in the Act.
Other Conditions than the Act
itself need not he and should not be
attached to the bonds. If the Legis-
lature shall deem it expedient to
pass an enabling Act, it would avoid
misunderstanding if the form of
the bonds authorized to be issued
should be set forth at large in the
Act.
Respectfully submitted,
A. f. JUDD,
L. MCCULLY,
EDWARD PRESTON.
RICHARD +. BICKERToN.